Crucial Exams

Multistate Bar Examination Practice Question

A recently passed federal law grants Congress the authority to hold ownership stakes in private businesses that produce goods deemed ‘critical to national security.’ A private technology company with no history of government contracts or direct involvement in defense supply challenges this law. The company argues that Congress exceeded its authority under the Constitution by enacting this legislation. Does Congress have the constitutional authority to enact such legislation?

  • Yes, Congress possesses the implied power to act under the Necessary and Proper Clause to protect national security.

  • No, Congress cannot enact laws that regulate businesses lacking a constitutional basis for such authority.

  • Yes, Congress may regulate certain private businesses when justified under its commerce power authorization.

  • No, this law violates the separation of powers by improperly delegating authority to private companies.

Multistate Bar Examination
Constitutional Law
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